The ledger of Custer Company has the following work in process account. Work in

Question

The ledger of Custer Company has the following work in process account. Work in Process—Painting 5/1 Balance 4,280 5/31 Transferred out ? 5/31 Materials 6,260 5/31 Labor 4,710 5/31 Overhead 2,120 5/31 Balance ? Production records show that there were 480 units in the beginning inventory, 30% complete, 1,470 units started, and 1,530 units transferred out. The beginning work in process had materials cost of $2,570 and conversion costs of $1,710. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. (a) How many units are in process at May 31? Work in process, May 31 Entry field with incorrect answer now contains modified data units (b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.) The unit materials cost for May $ Entry field with incorrect answer now contains modified data (c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.) The unit conversion cost for May $

please show solutions to answers with plus,minus or division thank you

Explanation / Answer

A)Ending WIP = Beginnin +started - Transfered out

                  = 480 + 1470 -1530

                        = 420 units

Material conversion Units transfered out 1530 1530 Ending WIP 420 168     [420*.40] Equivalent units 1950 1698 COst incurred 2570+6260 = 8830 1710 + 4710+2120 = 8540 cost per equivalent unit 1950/8830 = $ .22 8540 /1698 = 5.03

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